Knowing which ASX shares to avoid can be just as important as knowing which ones you should buy if you want a healthy portfolio.
With that in mind, it could be worth hearing what analysts are saying about the shares listed below, courtesy of The Bull.
Here's what they are saying:
ASX Ltd (ASX: ASX)
The team at Catapult Wealth thinks that this stock exchange operator is a sell this week.
It highlights that there has been a long stream of bad news out of ASX and appears concerned there's more to come. As a result, it thinks investors should wait for the ASIC final report before even considering a position. It said:
On January 28, 2026, the Australian financial markets operator updated the market on fiscal year 2026 expense guidance. Previous guidance, excluding Australian Securities and Investments Commission (ASIC) inquiry costs, has been lifted from between 8 per cent and 11 per cent to between 13 per cent and 15 per cent.
Including ASIC inquiry costs, total expense guidance has increased from between 14 per cent and 19 per cent to between 20 per cent and 23 per cent. Unaudited statutory net profit after tax of $263.6 million in the first half of 2026 was up 8.3 per cent on the prior corresponding period.
Underlying return on equity of 13.5 per cent remains flat. ASIC's interim report cited ASX operational and governance issues. The shares have been under pressure since the ASIC inquiry was announced in June, 2025. Until we know what ASIC's final report contains, other stocks appeal more.
Reece Ltd (ASX: REH)
Catapult Wealth also thinks that this plumbing parts company is an ASX share to sell this week.
It notes that Reece has started FY 2026 softly and given the lofty premium its shares trade on, it thinks investors should be taking profit now. Catapult Wealth explains:
The soft first quarter of fiscal year 2026 for this plumbing supplies company reflected subdued housing activity in Australia and the United States. Sales on a like-for-like basis increased just 2 per cent in Australia and New Zealand amid a low single digit decline in the US. Group EBITDA of $222 million was down 8 per cent year-on-year.
The shares fell from $24.07 on January 30, 2025 to $10.22 on September 4. The shares were trading at $14.69 on January 29, 2026. The company was recently trading on a lofty price/earnings ratio above 28 times. Investors may want to consider locking in some gains, as the shares are exposed to a downwards rating, in our view.
Westpac Banking Corp (ASX: WBC)
Over at Morgans, its analysts have named this big four bank as an ASX share to sell this week.
The broker believes there are better options out there for investors to choose from, especially given its subdued earnings growth outlook. It said:
Weaker consumer sentiment in an uncertain policy environment cloud the earnings outlook. Recent economic commentary highlights creeping pessimism among Australian consumers. Uncertainty around interest rate expectations creates a challenging setting for major banks to profitably grow credit. Westpac's long term projections show acceptable returns.
However, in our view, near term momentum appears constrained by operational adjustments, margin pressure and a more cautious economic tone. Given limited earnings catalysts on the horizon, we see better opportunities elsewhere.
